South Korea’s SK Hynix is in talks with Intel about a deal that would see it manufacture memory chips on US soil for the first time, three people familiar with the discussions said.

Under one potential scenario, SK Hynix would lease part of Intel’s long-planned chipmaking facility in Ohio, they said.
Under another scenario, it could form a venture with Intel and major cloud firms that are keen to lock in memory chip supplies, two of the people said.

A deal would relieve pressure on Intel, which has been struggling, and mark a big win for the Trump administration, which has been ramping up pressure on chipmakers to build in the United States as relentless investment in AI and data centres fuels an acute shortage of memory chips.

But potential opposition from Seoul could be a major hurdle, the sources said.

One of the sources described the talks as exploratory and stressed that no decisions have been made, adding that SK Hynix might also consider other ways to structure the deal.

Details about how a SK Hynix-Intel deal might be structured are being reported for the first time.

Reuters was, however, not able to learn what types of chips SK Hynix may manufacture in Ohio if an agreement is struck.

Its product lineup includes DRAM (dynamic random-access memory) chips used in servers, PCs and smartphones and NAND flash memory chips that provide long-term storage memory.

It is also the leading supplier of high-bandwidth memory (HBM) used in AI processing units.

Any agreement to produce advanced memory such as HBM or even DRAM could run into opposition from the South Korean government as those technologies are considered sensitive, said the three sources who declined to be identified as the information is not public.

SK Hynix said in a statement to Reuters that it is “reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business,” but “no matters have been determined at this stage.”

Intel declined to comment on what it called speculation, but added that it was continuing with investments in Ohio to ready the site.

Asked about a potential SK Hynix plan to produce chips in the US, South Korea’s trade ministry said any decision would be at the company’s discretion but if it involved a “national core technology,” it would be subject to a review under the Industrial Technology Protection Act.

The US Commerce Department did not respond to a request for comment.

Manufacturing semiconductors in the US costs much more than in South Korea, according to two of the sources.

Building in the United States entails significantly higher labour and construction costs, and much of the semiconductor industry’s supply chain is located within Asia, which also increases US costs, one of them said.

Even so, SK Hynix, which recently completed a secondary listing on the Nasdaq in July and currently only has a chip packaging facility under construction in Indiana, has good reasons to pursue fabricating chips in the United States.

Chey Tae-won, chairman of the SK Group conglomerate that SK Hynix is part of, said in July that the company faces enormous pressure and lobbying from customers and countries to supply more chips.

“I think we need to build a factory in the United States. If possible, I believe we should build it,” he told reporters.
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A deal with SK Hynix would also ease some of the financial strain on Intel, which is part-owned by the US government.

Intel announced in 2022 that it would invest up to $100 billion to build potentially the world’s largest chipmaking complex in Ohio, with production scheduled to begin in 2025.

But completion of the site’s two plants has since been delayed to 2030 and 2031.

Pleasing both Washington and Seoul could be tough, however, particularly as SK Hynix and rival Samsung Electronics have been urged by the Seoul to accelerate plans to build a new cluster of chipmaking facilities in South Korea’s southwest.

US Commerce Secretary Howard Lutnick has threatened to impose up to 100 percent tariffs on South Korean and Taiwanese companies unless they commit to increased production on American soil.

Both countries have also been wrangling over the execution of a huge investment commitment that South Korea made to the US last year in return for lower US tariffs.

Some $150 billion of a proposed $350 billion has been earmarked for shipbuilding but the remaining $200 billion is undecided.

Two of the sources said this has left SK Hynix in a difficult position, with the South Korean government seeking to use any US investment by SK Hynix as leverage in the talks, and Washington heaping pressure on the firm to quickly commit to a US expansion.

Oil prices fell on Wednesday as reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns about the scale of Middle East supply disruptions.

Brent crude futures were down 83 cents, or 0.76 percent to $107.92 a barrel at 0801 GMT, while US West Texas Intermediate futures were down $1.41, or 1.33 percent at $104.42 a barrel.

In the previous session, oil prices settled more than $3 higher after shipping industry sources said crude loadings at Saudi Arabia’s Red Sea export hub of Yanbu had been suspended and Riyadh had cancelled some cargo deliveries to European customers, deepening concerns that disruptions to a critical export route could persist for weeks.

However, Saudi Arabia is offering more loadings of crude oil to Asian refiners via ship-to-ship transfer off Oman’s Sohar port after drone attacks damaged its key oil pipeline to the Red Sea, people familiar with the matter said.

“News around Saudi Arabia exporting from the Gulf suggests concerns that the disruption could be larger are easing,” said UBS analyst Giovanni Staunovo.

Visible vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday. That was well below the 10-day average of 18.

The waterway handled a fifth of the world’s oil and liquefied natural gas supply before the US-Israeli war on Iran began in late February.

Macquarie analysts said flows of crude, condensate and refined products through the Strait of Hormuz had remained resilient despite escalating hostilities in the region and may have risen to more than 7.5 million barrels per day since fighting resumed on August 30. They said the link between developments in the strait and oil flows had weakened.

Citi expects near-term escalation in the Middle East to continue supporting crude oil and refined fuel prices before the Strait of Hormuz eventually reopens in the fourth quarter of 2026 with support from regional diplomatic efforts, the bank said in a note.

European diesel futures settled at a record high and rose to their highest intraday level since April on Tuesday, underscoring tightness in fuel markets as Middle East disruptions constrained crude and product flows.

“I would expect, unless there is a peace deal or an improvement in the situation in Russia, that diesel prices stay supported,” Staunovo said.

US INVENTORIES WEIGH

Separately, US crude oil, gasoline and distillate inventories all rose last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Crude inventories rose by 7.1 million barrels in the week ended September 11, the sources said, citing API data. That compared with analysts’ expectations for a draw of about 1.6 million barrels, according to a Reuters poll.

API’s data showed unexpected increases in gasoline and diesel inventories have weighed on prices, but regional stock increases do not change the underlying tightness in the global crude market, Haitong Futures said in a note.

Gold prices ticked up on Wednesday as oil prices eased, while market participants looked ahead to the US Federal Reserve’s policy decision, with a rate hike largely priced in.

Spot gold was up 0.8 percent at $4,326.83 per ounce, as of 0650 GMT, after touching a more than one-month low on Monday.

US gold futures for December delivery were down 0.8 percent at $4,367.20.

“A hawkish Fed could pull gold down, while any soft messaging may ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East,” said Frank Walbaum, a market analyst at trading platform Naga.com.

Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding bullion. Oil prices fell after an unexpected buildup in US crude inventories, while investors assessed supply risks after Saudi Arabia suspended oil loading at its Yanbu port.

Traders are pricing in a 92.7% chance of at least a 25-basis-point US rate hike later in the day, according to CME FedWatch.

The policy decision will be followed by a press conference from Fed Chair Kevin Warsh.

On the geopolitical front, Saudi Arabia’s air defences destroyed a Houthi drone south of Mecca before it entered prohibited airspace over the holy city, a spokesperson for the Saudi-led military coalition in Yemen said, as fighting spreads in the Middle East.

Commerzbank said it was somewhat surprising that gold prices had not come under greater pressure so far.

It noted that gold’s resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as well as a recent rise in US political risks.

Among other metals, spot silver rose 1.5 percent to $64.59 per ounce, platinum edged 0.7 percent higher to $1,787.90, while palladium gained 2.2 percent to $1,317.50.

The Moscow Chamber of Commerce and Industry has expressed interest in forming a joint Russia-Bangladesh business council to strengthen trade, investment and economic cooperation between the two countries.

The Russian side also wants to organise a Russia-Bangladesh business forum in Moscow to facilitate direct business-to-business contacts between entrepreneurs from the two countries.

Alexander Grigoryevich Khozin, Russian ambassador to Bangladesh, conveyed the proposals during a meeting with Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, at the federation’s Gulshan office yesterday.

A formal announcement on the proposed business council may come at the meeting of the Intergovernmental Commission, scheduled to be held in Dhaka in early November, Alexander said.

The ambassador said the proposed forum in Moscow would bring Bangladeshi and Russian businesses together for direct B2B meetings and other sessions based on the profiles of participating Bangladeshi entrepreneurs.

At the meeting, Fazlul urged both sides to look beyond the readymade garment sector and explore new areas of trade.

He particularly highlighted pharmaceuticals, leather and leather goods, jute and jute products, ceramics and the export of manpower to Russia.

Alexander said Russia’s health ministry was already reviewing procedural and legal issues related to importing generic medicines from Bangladesh.

He also said there was good demand in Russia for heavy footwear and leather goods suitable for its harsh winter.

Russia has issued visas to around 3,000 Bangladeshi workers in recent months as employment opportunities have emerged in agriculture, fisheries, shipbuilding and the services sector, he informed.

The two sides also discussed the progress of the Rooppur Nuclear Power Plant project.

Around 4,000 Russian specialists and engineers are working to resolve technical issues related to the project, Alexander said.

He said work was progressing with the aim of supplying the first 300 megawatts of electricity to the national grid by next month.

Both sides expressed hope that greater cooperation between the government and private sectors would help strengthen commercial ties between Bangladesh and Russia.

SRI LANKA INVITES BANGLADESHI DELEGATION TO ATTEND FAIR

Meanwhile, Dharmapala Weerakkody, Sri Lankan high commissioner to Bangladesh, held a separate meeting with the FBCCI administrator yesterday.

He said the international trade fair Sri Lanka Expo 2027 would be held in Colombo from January 14 to 17 next year.

The Sri Lankan envoy invited a Bangladeshi business delegation, led by the FBCCI, to participate in the fair.

Hoque responded positively to the proposal to send a delegation to the expo.

Md Alamgir, secretary general of FBCCI, along with officials from the Russian Embassy and the Sri Lankan High Commission, attended the respective meetings.

মধ্যপ্রাচ্যে চলমান সংঘাত ও গুরুত্বপূর্ণ জ্বালানি পরিবহন রুটে নিরাপত্তা ঝুঁকির মধ্যে সৌদি আরবের ইস্ট-ওয়েস্ট পাইপলাইন ক্ষতিগ্রস্ত হওয়ায় ইউরোপের কয়েকটি রিফাইনারিতে নির্ধারিত তেল সরবরাহ বাতিল হয়েছে। একই সময়ে হরমুজ ও বাব আল-মান্দেব প্রণালিতে জাহাজ চলাচল কার্যত বন্ধ থাকায় বিশ্ববাজারে অপরিশোধিত জ্বালানি তেলের দাম বেড়েছে। তবে এ পরিস্থিতিতে বাংলাদেশের জন্য এখনই সরবরাহ সংকটের আশঙ্কা দেখছে না জ্বালানি বিভাগ ও বাংলাদেশ পেট্রোলিয়াম করপোরেশন (বিপিসি)। দেশে পর্যাপ্ত মজুদ থাকলেও সংঘাত দীর্ঘায়িত হলে এবং পরিবহন রুটের ঝুঁকি বাড়লে আন্তর্জাতিক বাজারে দাম ও পরিবহন ব্যয় বেড়ে বাংলাদেশের জ্বালানি আমদানি ব্যয়ে বড় চাপ তৈরি হতে পারে বলে আশঙ্কা করছেন সংশ্লিষ্টরা।
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সম্প্রতি সৌদি আরবের বৃহৎ জ্বালানি তেলের ইস্ট-ওয়েস্ট পাইপলাইন ক্ষেপণাস্ত্র হামলায় ক্ষতিগ্রস্ত হওয়ায় ইউরোপের তেল পরিশোধনাগারগুলোতে তেল রফতানি বন্ধ ঘোষণা করেছে। ইউরোপের রিফাইনারিগুলোর জন্য সেপ্টেম্বরে সরবরাহের শিডিউল থাকা বেশকিছু কার্গো এরই মধ্যে বাতিল করা হয়েছে। হরমুজ ও বাব আল-মান্দেব প্রণালিতে জাহাজ চলাচল কার্যত বন্ধ থাকায় ফিউচার মার্কেটে অপরিশোধিত জ্বালানি তেলের (ক্রুড অয়েল) দাম ব্যারেলপ্রতি ১০৮ ডলারের বেশিতে ওঠানামা করছে। পরিস্থিতি আরো অবনতি হলে জ্বালানি তেলের সরবরাহ সংকট এশিয়ার বাজারেও বড় ধরনের নেতিবাচক প্রভাব ফেলবে বলে জানিয়েছে জ্বালানির আন্তর্জাতিক বাজার বিশ্লেষণের পূর্বাভাস দেয়া প্রতিষ্ঠানগুলো।

ইউরোপের বাজারে তেল রফতানি স্থগিত কিংবা কার্গো সরবরাহ বাতিল করলেও বাংলাদেশ সরবরাহ বন্ধ-সংক্রান্ত কোনো বার্তা নেই বলে জানিয়েছেন জ্বালানি বিভাগের কর্মকর্তারা। বরং অপরিশোধিত জ্বালানি যে পরিমাণ আমদানি করা হয়েছে তা দিয়ে আগামী চার মাস কোনো অসুবিধা হবে না বলে জানিয়েছেন তারা।

জ্বালানি বিভাগের মুখপাত্র (যুগ্ম সচিব) মনির হোসেন চৌধুরী বণিক বার্তাকে বলেন, ‘সৌদি জ্বালানি সংকটে আমাদের আমদানি বন্ধ-সংক্রান্ত কোনো বার্তা নেই। আমরা জ্বালানি তেলের বড় অংশ এ অঞ্চল অর্থাৎ চীন, মালয়েশিয়া, সিঙ্গাপুর থেকে সংগ্রহ করি। সৌদি থেকে ক্রুড অয়েল আমদানি করি। এখন পর্যন্ত দুটো জাহাজ আমাদের স্টক রয়েছে, যা দিয়ে আগামী চার মাস ক্রুডের কোনো সমস্যা হবে না। এদিক থেকে আমরা নিশ্চিত রয়েছি।’

সৌদি আরবের তেল সরবরাহ কার্যক্রম বন্ধ থাকলে বাব আল-মান্দেব প্রণালি দিয়ে জাহাজ চলাচলে হুমকি, হরমুজ প্রণালি বন্ধ থাকলে তা জ্বালানি তেলের দাম ব্যাপক হারে বাড়িয়ে তুলতে পারে। এতে জ্বালানি আমদানিনির্ভর দেশ হিসেবে বাংলাদেশ ব্যয় বেড়ে যাওয়ার বড় ঝুঁকিতে রয়েছে বলে জানিয়েছেন জ্বালানি বিশেষজ্ঞরা।

এরই মধ্যে অপরিশোধিত জ্বালানি তেলের বিকল্প উৎস খুঁজছে বিপিসি। বিকল্প সরবরাহকারীদের সঙ্গে আলোচনাও করেছে সংস্থাটি। পাশাপাশি ইস্টার্ন রিফাইনারিতে পরিশোধনের উপযোগী চারটি দেশের অপরিশোধিত তেল চিহ্নিত করেছে বিপিসি। নাইজেরিয়ার ‘বনি ক্রুড’, মালয়েশিয়ার ‘মালয়েশিয়ান ব্লেন্ড’, নরওয়ের ‘আলভহেইম ব্লেন্ড’ এবং আলজেরিয়ার অপরিশোধিত তেলের বৈশিষ্ট্য পরীক্ষা করা হয়েছে। বিপিসি জানিয়েছে, বিদ্যমান শোধনাগার সুবিধা ব্যবহার করেই এসব অপরিশোধিত তেল প্রক্রিয়াজাত করে বাজারজাত করা সম্ভব। গত এপ্রিলে ইস্টার্ন রিফাইনারি নমুনা পরীক্ষার প্রতিবেদন বিপিসির কাছে জমা দেয়।

দেশে প্রতি বছর জ্বালানি তেলের চাহিদা ৬৫ থেকে ৭০ লাখ টন। যার মধ্যে অপরিশোধিত তেল আমদানি করা হয় ১৪-১৫ লাখ টন। দুটি দেশ থেকে এ তেল আমদানি করা হয়, যার মধ্যে সৌদি আরবের রাষ্ট্রায়ত্ত ‘অ্যারাবিয়ান লাইট ক্রুড’ এবং সংযুক্ত আরব আমিরাতের ‘মারবান ক্রুড’। এ দুই ধরনের অপরিশোধিত তেল থেকে ডিজেল, বিটুমিন ও পেট্রলসহ ১৩ ধরনের পেট্রোলিয়াম পণ্য তৈরি হয় দেশের রিফাইনারিতে।

বিপিসির নতুন চেয়ারম্যান মো. রফিকুল ইসলাম বণিক বার্তাকে বলেন, ‘বর্তমানে দেশে তেলের পর্যাপ্ত মজুদ আছে, আগামী ডিসেম্বর পর্যন্ত দেশে জ্বালানির কোনো ঘাটতি হবে না। সেই সঙ্গে অপরিশোধিত জ্বালানি তেলের বিকল্প উৎসগুলোর সঙ্গে বিপিসি এরই মধ্যে আলোচনা শুরু করেছে।’

Work is progressing with the target of supplying 300 megawatts of electricity from the Rooppur Nuclear Power Plant to the national grid within the next month, said the Russian Ambassador to Bangladesh Alexander Khozin.

He made the remarks on Wednesday during a courtesy meeting with Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the organisation’s Gulshan office in Dhaka, according to an FBCCI press release.

The meeting also discussed progress on the Rooppur Nuclear Power Plant project.

Khozin said that around 4,000 Russian specialists and engineers are working tirelessly to resolve the project’s technical issues as quickly as possible.

He further stated that the Moscow Chamber of Commerce and Industry has expressed interest in forming a joint "Russia-Bangladesh Business Council" to further intensify and expand trade, investment and economic cooperation between Bangladesh and Russia.

They also have plans to organise a Russia-Bangladesh Business Forum in Moscow, he said.

The Russian ambassador said that an official announcement on this matter may come during the inter-governmental commission meeting scheduled to be held in Dhaka early November.

He said the forum is being organised in Moscow to facilitate direct communication between entrepreneurs from the two countries. Various sessions, including direct business-to-business (B2B) meetings will be arranged based on the profiles of participating businessmen from Bangladesh.

At the meeting, FBCCI Administrator Fazlul Hoque called for greater focus on new and promising sectors alongside the readymade garment sector to boost bilateral trade.

He placed particular emphasis on exporting human resources to Russia, along with pharmaceuticals, leather and leather goods, jute and jute products and ceramics.

The Russian ambassador said the Russian Ministry of Health is already reviewing procedural and legal issues concerning the import of generic medicines from Bangladesh.

He added that there are also strong demand for heavy footwear and leather goods suitable for Russia’s severe winter.

Khozin further said Russia had issued visas to around 3,000 Bangladeshi workers in recent months as employment opportunities had emerged in agriculture, fisheries, shipbuilding and service sector.

Bangladeshi expatriates sent home $1.526 billion in remittances during the first 14 days of September, according to the latest data from Bangladesh Bank.

This reflects a 3.4 percent growth compared to $1.475 billion received during the corresponding period last year.

On September 14 alone, the country received $98 million in remittances.

With the latest figures, total remittance inflows between July 1 and September 14 in fiscal year 2026-27 reached $7.351 billion, marking a 15.3 percent year-on-year growth from $6.375 billion collected during the same period of FY26.

Bangladesh's apparel exports to the US surged 25.65% year-on-year in August, despite a decline in shipments to the market during the first half of 2026.

According to data from the Bangladesh Export Promotion Bureau, compiled by non-government organisation Bangladesh Apparel Voice, the country exported more than $817 million worth of ready-made garments to the US market in August.

In the first two months of the current fiscal year, July and August, Bangladesh's RMG exports to the US totalled $1.61 billion, up 11.42% year-on-year.

The US is Bangladesh's single largest export market. In the fiscal 2025-26, Bangladesh exported more than $7.74 billion worth of RMG to the country.

However, according to the latest statistics from the Office of Textiles and Apparel (Otexa) under the US Department of Commerce, Bangladesh's RMG exports to the US fell 5.75% in the first half of 2026 compared with the same period a year earlier.

"We are seeing better order flows from the US market for the coming months than in the previous months."

Rakibul Alam Chowdhury, managing director, HKC Apparels Ltd
Exporters cautiously optimistic

Exporters have mixed expectations about the market, with some remaining cautious while others are hopeful that shipments will recover in the coming months if geopolitical tensions do not worsen and Bangladesh's energy supply improves.

Rakibul Alam Chowdhury, managing director of Chattogram-based RMG exporter HKC Apparels Ltd, which sends 90% of its exports to the US market, told The Business Standard, "We are seeing better order flows from the US market for the coming months than in the previous months."

He added. "We hope the market will rebound, provided geopolitical tensions do not escalate further and the country's gas and electricity supply situation improves."

Abdullah Hil Nakib, deputy managing director of Team Group, a leading RMG exporter whose exports to the US account for about one-fourth of its total exports, said, "The US market scenario is still not optimistic. It is not like a normal scenario."

Mohiuddin Rubel, CEO of Bangladesh Apparel Voice, said if the current pace of exports is maintained throughout the 12 months, Bangladesh's RMG exports to the US could reach nearly $9 billion in FY27.

Oil prices rose more than 2 percent on Tuesday after attacks on Saudi Arabian energy infrastructure left the kingdom’s East-West pipeline offline, raising fears that damage to energy infrastructure and transport routes could take longer to repair.

Brent crude futures rose $2.5, or 2.37 percent, to $108.18 a barrel at 0813 GMT, while US West Texas Intermediate futures were up $2.46, or 2.43 percent, at $103.85 a barrel. Concerns over oil supplies intensified after Iran-backed Houthi forces in Yemen launched fresh attacks on Saudi Arabia on Monday, while Gulf Arab states postponed planned discussions with Iran.

“Fresh attacks by the Houthis targeting Saudi Arabia may be influencing oil market investors’ expectations about the severity and duration of the conflict,” said Hamad Hussain, senior climate and commodities economist at Capital Economics.

The Houthis on Monday said they fired dozens of missiles and drones at a military airbase in Khamis Mushait in southern Saudi Arabia, targeting aircraft hangars, radar systems, runways and ammunition depots in retaliation for Saudi airstrikes in Yemen.

This followed attacks on Friday on Saudi Arabia, which Riyadh blamed on Iranian-backed fighters in Iraq, that disrupted the country’s East-West pipeline, which allows oil exports to bypass the blockaded Strait of Hormuz, through which about a fifth of global oil supplies previously passed.

Saudi Arabia could exhaust crude available for export within days unless the East-West pipeline resumes operations, according to buyers and traders. The pipeline strike threatened up to 4 percent of global oil supply. “The recent attack may be more severe and could threaten the remaining 2mb/d of recent Yanbu exports, with the latest repair assessments ranging from ‘very soon’ to eight weeks,” Goldman Sachs said in a note.

The attacks on oil infrastructure marked a meaningful escalation of the conflict and increased the probability of Brent rising above $120 a barrel, Goldman Sachs said, citing a scenario in which average Gulf oil output in 2027 remains 4 million barrels per day below pre-war levels.

Commodity vessel traffic through the Strait of Hormuz dropped to four on Monday, down from 10 a day earlier, preliminary data from Kpler showed on Tuesday, raising concerns about a route that carried about a fifth of global oil supplies before the US-Israeli war on Iran kicked off on February 28.

“In the absence of an adjustment in demand or greater oil flows through the Strait of Hormuz, several weeks of the East-West pipeline being closed could lift Brent crude prices towards $130 per barrel,” Hussain said.

Separately, in China, official data showed that oil throughput rose for a second straight month in August, boosted by fuel exports after Beijing eased restrictions in mid-July.

The Insurance Development and Regulatory Authority (IDRA) aims to improve the claim settlement rate from 57 per cent as of June to at least 75 per cent, as it faces a mammoth volume of unpaid claims worth Tk 70 billion.
At a programme at the IDRA office in the capital on Monday, IDRA Chairman Mir Nadia Nivin said the regulator had adopted a two-pronged strategy to reach the goal by gradually clearing the backlog of unpaid claims. She, however, did not mention any timeframe within which the target will be achieved.

Under the strategy, she said, IDRA has been holding meetings with owners and chief executive officers of insurers to identify and resolve obstacles to claim settlement, including compliance-related issues. At the same time, it has been monitoring financially distressed insurers.

Monday's programme marked the second phase of a special claim settlement initiative, under which Tk 230.4 million in long-pending claims was paid to 5,868 policyholders of five life insurance companies.

The IDRA chairman, who took office in July this year, said quick settlement of long-pending legitimate claims was one of her top priorities. The initiative was aimed at protecting policyholders' rights and restoring discipline and public trust in the insurance sector, she added.

The payments were made possible by mobilising funds from various sources, including the sale of assets and encashment of security bonds of the insurers concerned.

Ms Nivin said IDRA was conducting one-to-one governance review meetings with insurance companies to determine why legitimate claims remained unpaid and what operational or compliance-related problems were delaying settlement.

"Some companies have ancillary and compliance-related problems," she said, adding that the regulator is working with relevant parties to resolve the issues quickly.

Of the country's 82 insurance companies, roughly eight life insurers are facing serious difficulties, and their failure to settle policyholders' claims on time has eroded public trust across the industry, according to the IDRA chief.

These seven to eight troubled life insurers are being dealt with separately, but IDRA's intervention is not confined to those companies.

"We have taken a holistic approach to improving claim settlement across the entire insurance sector," she said.

Companies facing moderate-level problems are also being brought under close supervision, with their financial capacity being reviewed and pressure applied to accelerate settlement of legitimate claims, she added.Banking Sector Analysis

Finance minister praises IDRA initiatives

Meanwhile, Finance and Planning Minister Amir Khosru Mahmud Chowdhury praised IDRA's ongoing reform initiatives during a visit to its office on Monday, particularly its efforts to strengthen governance, transparency and accountability in the insurance sector.

The minister welcomed the move to settle long-pending legitimate claims, saying payment of policyholders' rightful dues would help rebuild public confidence in insurance.

"Restoring policyholders' confidence is crucial to strengthening the insurance industry," he said, adding that visible steps were already contributing to rebuilding trust.

Mr Khosru also said the government was supporting IDRA in making insurance companies more effective, efficient and dynamic through the introduction of risk-based supervision.

He stressed that protecting the rights and interests of policyholders must remain a top priority, adding that customer complaint resolution and service-monitoring mechanisms should also be strengthened to ensure better protection for policyholders.

The minister underscored the need to increase public awareness of insurance, financial security and risk management, saying IDRA's initiatives should make insurance more accessible, understandable and trustworthy to ordinary people.

He praised the reform measures being pursued under the leadership of Ms Nivin and expressed hope that the reforms would make the insurance sector more robust, transparent and customer-centric, enabling it to play a greater role in the national economy.Stock Market Updates

IDRA steps up claim settlement

In the second phase of the claim settlement initiative, Padma Islami Life Insurance paid around Tk 120 million to 3,600 policyholders.

Homeland Life Insurance settled claims worth Tk 49.8 million for 1,145 policyholders, while Fareast Islami Life Insurance paid Tk 50 million to 580 policyholders.

Sunflower Life Insurance paid Tk 5.53 million to 300 policyholders, and Sunlife Insurance settled Tk 5.01 million in claims for 243 policyholders.

The second-phase payments followed the first phase, executed on September 3, when IDRA facilitated the settlement of claims worth Tk 145.1 million for 2,549 policyholders of seven life insurers.

The first phase covered policyholders of Baira Life, Fareast Islami Life, Golden Life, Homeland Life, Padma Islami Life, Progressive Life and Sunflower Life Insurance.

The latest move is part of IDRA's broader effort to address the sector's chronic claim settlement problem, which has left thousands of policyholders waiting for years to receive legitimate dues.

The IDRA chairman said the effort to pay policyholders back would continue, and the remaining valid but unpaid claims would be verified and scrutinised before being settled.

Moody's Ratings has revised Bangladesh's sovereign outlook to stable from negative, citing easing political and external pressures, stronger foreign exchange reserves and record remittance inflows.

The rating agency, in its latest assessment released today (15 September), affirmed Bangladesh's long-term issuer and senior unsecured ratings at B2 and its short-term issuer ratings at Not Prime.

Moody's said the risks that had prompted the negative outlook had become more balanced at the B2 rating level.

It said the post-election transition and the government's strong mandate had reduced the risk that political uncertainty would derail reforms.

Bangladesh's external position has also strengthened, supported by higher foreign exchange reserves, a more flexible exchange rate regime and record remittances that have helped offset increased energy import costs, the agency said.

Continued engagement with the International Monetary Fund (IMF) and other international financial institutions remains an important anchor for external financing and reforms, although discussions are still under way over the terms of a successor IMF programme.

Reserves strengthen, growth recovery gradual

Bangladesh's foreign exchange reserves had risen to around $32.9 billion by mid-2026, equivalent to more than four months of import cover, from about $21.4 billion at the end of 2024.

Moody's attributed the improvement to record remittances increasingly flowing through formal banking channels, the more flexible exchange rate regime and the removal of earlier market distortions.

The agency expects economic growth to recover gradually. Real GDP growth rose to 4.1% in FY2026 from 3.5% in FY2025 and is projected to reach 4.3% in FY2027 before accelerating to around 4.9% from FY2028 as investment and industrial activity normalise.

Inflation, however, is expected to remain around 9% before easing gradually.

Banking sector remains key weakness

Despite the improved outlook, Moody's retained Bangladesh's B2 rating, citing the country's narrow revenue base, weak debt affordability and significant vulnerabilities in the banking sector.

The agency said reforms had revealed system-wide non-performing loans of around 32.8%, while banks would require recapitalisation equivalent to around 10% of GDP to restore regulatory capital adequacy.

Such a requirement could place a significant burden on the government because of limited fiscal space and growing reliance on domestic bank financing, Moody's said.

Banking-sector liquidity, meanwhile, has remained stable, with system-wide deposits growing by around 12% year-on-year to March 2026. This suggests the sector's main weakness is solvency rather than liquidity, according to the agency.

Narrow revenue base constrains fiscal strength

Moody's said Bangladesh has one of the narrowest government revenue bases among rated sovereigns, limiting its fiscal flexibility.

Interest payments absorb close to 30% of government revenue, even though government debt remains relatively moderate at around 40% of GDP.

The agency expects debt to rise gradually over the medium term because of persistent primary deficits and potential costs associated with supporting the banking sector.

Continued access to concessional financing should nevertheless help contain borrowing costs and refinancing risks, it said.

Energy, LDC graduation pose risks

Energy supply constraints remain a risk to Bangladesh's growth prospects, Moody's said.

A recent disruption at an LNG import terminal exposed vulnerabilities in the country's energy supply system and caused shortages affecting power generation, industry and fertiliser production.

The agency also warned that Bangladesh's graduation from least-developed-country (LDC) status in the coming years could put pressure on export competitiveness and access to concessional financing.

The ready-made garment (RMG) sector is expected to remain a key pillar of exports, supported by Bangladesh's competitive position. Sustained structural reforms, however, will be needed to realise the country's longer-term growth potential.

What could change the rating?

Moody's said faster-than-expected progress in addressing banking-sector weaknesses, stronger revenue mobilisation, and improvements in institutions and policy effectiveness could create upward pressure on the rating.

Conversely, a material crystallisation of banking-sector liabilities on the government's balance sheet, a weaker growth or fiscal outlook, reduced access to external financing or renewed political instability could put downward pressure on the rating.

When Finance Minister Amir Khosru Mahmud Chowdhury unveiled this fiscal year’s budget, he offered good news to compliant taxpayers, particularly those who file returns early.

“All categories of taxpayers will be able to file returns throughout the year. Those who submit returns early in the year will receive tax incentives,” he told the parliament.

But there is a catch. Taxpayers who have already cleared their full income tax liability before June may be excluded from the new 5 percent early-filing incentive.

This has raised questions about fairness among taxpayers, practitioners and former officials of the National Board of Revenue (NBR).

Under Finance Act 2026, individuals filing between July 1 and September 30 qualify for an incentive equal to 5 percent of tax payable, or Tk25,000, whichever is lower. The problem lies in the phrase “tax payable”, rather than “total tax liability”.

Consider a taxpayer with a final liability of Tk5 lakh who has already paid it in full through advance tax or tax deducted at source (TDS).

When the taxpayer files, there is no tax payable left after adjustments, leaving little scope for the incentive. Another taxpayer with the same liability but an outstanding balance at filing time could receive the full Tk25,000.

Tax practitioners say the provision could discourage the very taxpayers it is meant to reward.

Meanwhile, another taxpayer with an identical liability but an outstanding balance at filing time could pocket the full Tk 25,000.

“If the objective is to encourage voluntary compliance, taxpayers who have already paid their taxes should not be placed at a disadvantage,” said Sabbir Ahmed, tax practitioner and president of the Institute of Chartered Accountants of Bangladesh.

“There should be a distinction between encouraging late taxpayers to file early and rewarding taxpayers who have already demonstrated compliance,” he said.

The issue is particularly relevant for salaried employees, whose taxes are often deducted at source throughout the year, and taxpayers who pay advance tax against expected liability, since such payments are later adjusted against final liability.

Former NBR member Syed Md Aminul Karim said the provision raises questions about equity.

“The person who has been a good taxpayer and has already paid the tax earlier, he is the loser. And the person who has not paid, he is the gainer. This raises a question of equity,” he said.

Aminul said the issue could be addressed through a clarification in the relevant circular rather than a legal amendment.

“The law does not necessarily have to be changed. The explanation in the circular needs to be changed,” he said.

“Those who regularly pay their taxes are facing a disadvantage. I think this is a mistake. It should be corrected,” he added.

Snehasish Barua, director of SMAC Advisory Services Limited, said the provision could particularly disadvantage salaried employees whose taxes are fully deducted at source and deposited with the government.

“Those who work in compliant companies have 100 percent of their tax deducted and deposited into the government treasury,” he said. “So you are effectively penalising the compliant taxpayers and incentivising the non-compliant.”

He suggested calculating the incentive on gross tax liability rather than net payable amount.

“This should have been based on the gross amount, because you are not giving more than Tk25,000 anyway. Since it is based on the net amount, it is creating discrimination here,” he said.

The NBR introduced the incentive as part of changes to the return-filing framework for individual taxpayers, following repeated extensions of filing deadlines.

Under the new provision, returns filed between October 1 and December 31 will face neither incentive nor additional tax.

Those filed between January 1 and March 31 will attract additional tax of 2 percent of payable tax or Tk 3,000, whichever is higher. For returns filed between April 1 and June 30, the additional tax rises to 5 percent of payable tax or Tk 5,000, whichever is higher.

An official involved with the budget process said the new provisions need to be read together to understand the incentive and advance tax requirements.

“Whatever advance tax is payable has to be paid by June. If not, there will be additional interest on the unpaid portion,” the official said. “Suppose a person has Tk 100 tax payable. If he pays Tk 90 by June, he will pay simple interest on the remaining Tk 10.”

Asked whether the provision raises a fairness issue for taxpayers who have already paid in full, the official said, “We are ensuring fairness in this area,” adding that the issue would become clearer when the relevant provisions are considered together.

Another tax official, speaking on condition of anonymity, said the original plan was broader.

“Initially there was a plan on the whole tax liability. But it was curtailed by the high-ups,” the official said, adding that there was currently no option to address the issue unless the tax law was amended.

Market intermediaries have proposed reviving the long-suspended pre-opening trading session and introducing new trading strategies and products to improve liquidity and revive activity on the Dhaka Stock Exchange (DSE).

The proposals came at a meeting between the DSE and representatives of leading brokerage firms held at the DSE boardroom today (15 September), where participants discussed short-, medium- and long-term measures to address the capital market's prolonged weakness.

The brokers also called for a review of debt repayment deadlines and extensions of Bangladesh Bank's special capital market schemes to provide relief to financially distressed intermediaries.

They proposed introducing a members' margin net-off facility to reduce financing costs and ease liquidity-management pressure on brokerage houses.

The meeting was attended by DSE Managing Director Nuzhat Anwar, senior DSE officials and representatives of leading brokerage firms.

Opening the meeting, Nuzhat said the DSE wanted to hear stakeholders' practical experiences and constructive recommendations on the market's development.

She said the exchange would consider the proposals and, where necessary, place them before the DSE board and the Bangladesh Securities and Exchange Commission for further action.

She also said preparations for launching a derivatives market were progressing, with the exchange working to complete the necessary technological infrastructure, including software, within the planned timeframe.

Saiful Islam, president of the DSE Brokers Association (DBA), said the market was going through a difficult and frustrating period, while several longstanding issues remained unresolved.

"Identifying the causes of the current situation and finding ways to overcome them are among the key objectives of the discussion," he said, urging market participants to put forward practical solutions rather than merely identifying problems.

Participants also called for inspection and surveillance activities to become more regular, data-driven, risk-based and transparent.

They recommended that regulatory action be taken after system-based verification of information, with greater focus on unusual price movements and genuine signs of manipulation rather than normal fluctuations in trading volume.

They further stressed the need to diversify the market beyond equities by expanding the range of bonds and other financial instruments. A clearer regulatory framework for dealers' roles and responsibilities was also proposed.

To attract foreign investment, participants recommended identifying and removing policy and procedural barriers, arranging investor-focused seminars and dialogues, and increasing direct engagement with high-net-worth investors and genuine market players.

They also urged the exchange to encourage leading companies to list on the stock market and examine the possibility of allowing share buybacks over the longer term.

Nuzhat said the DSE was strengthening its IT and organisational capacity, with a board-approved plan already under implementation. Training officials and developing data-based software are also underway to make inspection more structured and facilitate data reconciliation.

She said coordinated efforts were also progressing on online account opening, improving retail investor services and introducing T+1 settlement.

The DSE's new website is nearing completion and is scheduled to be launched at a press conference on 22 September. The existing website will remain operational for another two to three months to facilitate the transition and allow improvements based on user feedback.

Nuzhat said the exchange would work with all stakeholders to make its operations more transparent, efficient and accountable while strengthening the broader capital market ecosystem.

Stocks on the Dhaka bourse staged a strong rebound today (15 September), snapping a five-session losing streak as bargain hunters returned to the market on assurances of an imminent resolution to industrial gas supply constraints and expectations of regulatory measures to arrest the prolonged downturn.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), jumped 93 points to close at 5,472, recovering a significant portion of the losses accumulated over the previous five sessions. The blue-chip DS30 index also gained 24 points to settle at 2,087.

The rebound was broad-based, with 336 issues advancing against just 21 declining and 37 remaining unchanged. Turnover, however, rose only 4% to Tk504 crore, suggesting that while buying interest returned, investors remained selective amid lingering uncertainty.

EBL Securities said the battered market finally found some relief as bargain hunting spread across the bourse. Investor confidence improved following the prime minister's assurance of an imminent resolution to industrial gas supply constraints, along with the regulator's engagement with leading brokerage firms over the market's prolonged weakness.

The market opened on a positive note and maintained its upward momentum throughout the session. The DSEX gained more than 100 points at one stage as investors moved to pick up shares that had suffered sharp corrections during the recent sell-off.

Sheltech Brokerage Limited attributed the strong performance to renewed buying interest following expectations surrounding the regulator's decision to convene an urgent meeting with leading brokerages. Reports of a significant improvement in gas supply after the outage of a floating LNG terminal caused by a fire on 21 July also supported investor sentiment.

The benchmark index climbed to an intraday high of 5,489 points, near which it settled, as buying strengthened from the middle of the session.

However, market participants cautioned that today's rally should not yet be interpreted as a decisive turnaround. Investors are likely to closely monitor whether the renewed buying momentum can be sustained and broaden across sectors in the coming sessions.

The proposed market-development initiatives by the Bangladesh Securities and Exchange Commission, developments in the Middle East conflict, the country's energy supply situation and upcoming earnings and dividend announcements by companies with June year-end remain key factors that could determine the market's direction in the near term, said Sheltech Brokerage.

Large-cap stocks played a significant role in the day's rebound. BAT Bangladesh, Beximco Pharmaceuticals, BRAC Bank, City Bank and United Commercial Bank were among the major contributors to the rise in the benchmark index.

Trading activity was led by textile stocks, which accounted for 21.9% of total turnover. General insurance followed with 19.4%, while banks accounted for 12.2%.

Most sectors posted positive returns. Services gained 4.1%, making it the best-performing sector, followed by general insurance with a 3.8% rise and paper with 3.7%.

IPDC Finance, Reliance Insurance, Eastern Bank, Sharp Industries and Envoy Textile were among the most-traded stocks.

Yeakin Polymer led the gainers, rising 10%, followed by Al-Haj Textile at 9.96% and Orion Infusion at 9.95%. Samorita Hospital and Samata Leather advanced 9.90% and 9.87%, respectively.

A few securities bucked the broader rally. PHP First Mutual Fund and Popular Life Insurance First Mutual Fund each declined 2.85%, while Zahin Textile, Shurwid Industries and Al-Arafah Islami Bank fell 2.56%, 1.69% and 1.27%, respectively.

The Chittagong Stock Exchange also ended higher. The CSCX rose 26 points to 8,935, while the CASPI advanced 44 points to close at 14,598.

Biman is preparing to sign deals for 21 more Boeing and Airbus aircraft within weeks, taking its unfulfilled orders to 35 aircraft.

The national flag carrier currently has 19 planes.

Sources familiar with the process told The Daily Star that an agreement on 11 Boeing aircraft is expected during the UN General Assembly, followed by a deal on 10 jets with Airbus next month.

Details of the Boeing aircraft, their variants, value, financing structure, and delivery schedule have yet to be publicly disclosed.

The proposed Airbus package comprises four A350-900s and six A321neos, sources said.

The purchases would come on top of a $3.7 billion agreement signed in April for 14 Boeing aircraft: eight 787-10s, two 787-9s and four 737 MAX-8s, with deliveries scheduled to run from November 2031 to October 2035.

State Minister for Foreign Affairs Humaiun Kobir said at a programme in Dhaka on September 12 that Bangladesh needed to expand its aircraft fleet to support new routes and networks.

Any decision to buy Boeing or Airbus aircraft, he said, was “all business of Bangladesh, nobody else’s”.

Against this backdrop, European Union Ambassador Michael Miller last week urged the government to ensure a level playing field in Biman’s procurement process, saying such decisions should be made “on the basis of commercial merit.”

The proposed Airbus purchase came up again yesterday when British High Commissioner Sarah Cooke met Civil Aviation and Tourism Minister M Rashiduzzaman Millat at his Secretariat office.

According to a ministry press release, Millat said Biman was facing an aircraft shortage and that steps were being taken to add aircraft urgently.

He said any procurement would be carried out transparently, based on recommendations from the High-Level Negotiation Committee.

Biman currently operates 19 aircraft, including five turboprops, four 777s, four 787-8s, two 787-9s, and four 737-800s. If the deals go through, it will be the largest fleet expansion in Biman’s history.

Biman has not released a consolidated business case explaining how a mixed fleet and new planes would be used and when the old ones would be retired.

AIRBUS DEAL

Biman had earlier signalled readiness to conclude the Airbus agreement by August 31, according to sources familiar with the process. After that deadline passed without a signing, officials said the deal is now likely in October.

Millat at a programme in Mymensingh on August 31 said that Bangladesh would buy aircraft from France, England, and Germany, where sections of Airbus aircraft are made.

A source familiar with the process said Bangladesh bought Boeings at list prices, while Airbus had offered discounts.

The source said Airbus would begin the delivery process soon after the agreement is signed, with 85 percent of the purchase cost covered through financing from the UK, Germany, and France.

Interest rates would be disclosed only after the agreement is signed, sources said.

Airbus has also proposed a package covering maintenance, repair and overhaul (MRO), as well as pilot and cabin crew training, fleet planning, and cabin design, another source said.

BOEING DEAL

The potential order of 11 Boeing planes came to the fore on August 30, when US Special Envoy for South and Central Asian Affairs and Ambassador to India Sergio Gor said on X that President Donald Trump and Prime Minister Tarique Rahman had made “another incredible deal”.

Trump later shared the announcement and wrote to Tarique, expressing appreciation for the “decision to purchase.”

On September 1, Humaiun Kobir said Bangladesh faced no pressure from the US to buy Boeing aircraft, adding that the fleet expansion was based on the needs of the aviation sector.

CARGO HANDLING

The Cooke-Millat meeting also covered aviation security and airport operations.

Millat sought steps towards withdrawing the European Union’s High Risk Cargo & Mail (HRCM) status, imposed on Bangladesh in 2017, saying it had increased the time and cost of shipping. He said the government had taken initiatives to have the status withdrawn and was moving to install Explosive Detection Systems (EDS) at airports. The minister said Hazrat Shahjalal International Airport and Sylhet Osmani International Airport had received satisfactory ratings in a recently completed audit and that the government now wants the EU to withdraw the HRCM status.

Cooke said the UK was ready to cooperate with Bangladesh in its efforts to establish an aviation hub.

The meeting also discussed Menzies Aviation’s interest in working with Biman on ground handling at the third terminal.

Sources familiar with the process said the UK-based company wants to handle cargo there and that the proposed operation could create around 1,000 jobs locally.

They said Menzies is seeking government approval.

The third terminal is set to be operated by a Japanese consortium led by Sumitomo Corporation, which the Civil Aviation Authority of Bangladesh said will have the prerogative to select a second ground-handling operator alongside Biman.

Sources said proposals from interested firms, including Menzies, would therefore be assessed through that selection process.

Salman F Rahman, former private industry and investment adviser to ousted prime minister Sheikh Hasina, has agreed to resign from the boards of Beximco Group companies, a move expected to break a nearly two-year regulatory and legal deadlock and clear the way for long-delayed board meetings and annual general meetings.

Salman, who has been in jail since August 2024 and is facing multiple criminal charges, agreed to step down following discussions with the government, according to sources familiar with the matter.

The group's three listed companies – Beximco Ltd, Beximco Pharmaceuticals PLC, and Shinepukur Ceramics PLC – have separately informed the Bangladesh Securities and Exchange Commission (BSEC) of Salman's intention to resign and sought regulatory approval to reconstitute their boards, according to letters obtained by The Business Standard.

According to BSEC sources, his resignation is expected to remove a major obstacle to the companies' board operations – allowing them to hold board meetings and AGMs.

The development has also eased uncertainty surrounding Beximco Group in the stock market. Shares of all three listed companies gained today (15 September) as the DSEX rose 93 points after falling for five consecutive trading sessions.

In its letter to the BSEC, Beximco Pharmaceuticals said Salman intends to resign from its board "in consideration that the businesses be allowed to operate without any hurdle and interference in the best interest of Beximco Pharmaceuticals, its shareholders and employees".

The company said its board would be reconstituted after completion of the required regulatory procedures.

Under the proposed structure, the Beximco Pharma board would comprise four directors nominated by foreign shareholders, one director from local financial institution IFIC Bank, three sponsor directors, two independent directors in line with the Corporate Governance Code and a newly appointed managing director.

However, the proposed restructuring faces a regulatory hurdle because Salman's exit would reduce the combined shareholding of the sponsor group below the required 30% threshold.

A person familiar with the matter said Beximco Group and related sponsor shareholders, including IFIC Bank, currently hold around 30% of Beximco Pharma, with Salman alone holding about 2%.

His departure would therefore reduce the sponsor group's combined holding to roughly 28%, below the regulatory requirement.

The BSEC has suggested bringing foreign shareholders onto the board or adding another shareholder to the sponsor group to address the shortfall, according to sources.

The company has already approached its foreign shareholders, but they have shown reluctance to join the board, a source said. Discussions are continuing to find a solution.

"The immediate challenge is to maintain the required sponsor holding if the existing foreign shareholders decline to join the board," the source said, adding that bringing another shareholder into the sponsor group could be one possible solution.

BSEC Chairman Masud Khan told The Business Standard that the commission would accept the board reconstruction proposals after the regulatory issue concerning the combined shareholding of Beximco Pharma's sponsors is resolved.

He also said it was clear that Salman F Rahman would no longer remain on the boards of Beximco Group companies.

For Beximco companies without foreign shareholders, the restructuring is expected to be relatively straightforward, with independent and other proposed directors to be appointed subject to regulatory approval, according to sources.

A source also said an understanding had been reached regarding the existing court proceedings, under which the relevant writ petition or stay order would be withdrawn, clearing the way for board restructuring.

The proposed Beximco Pharma board structure is expected to include three independent directors and three directors representing the sponsor side, the source said.

Beximco Pharmaceuticals, which is also listed on the Alternative Investment Market (AIM) of the London Stock Exchange, said the appointment of new directors would have to comply with applicable AIM rules.

According to the company's letter, proposed directors must undergo due diligence through the company's nominated adviser (NOMAD) before being appointed.

The standard due diligence process generally takes four to six weeks, and the company expects the full board reconstitution process to take around six to eight weeks.

Salman also intends to resign from the boards of Beximco Ltd, Shinepukur Ceramics and Beximco Securities for similar reasons, according to the letter.

Beximco's massive debt burden

The board restructuring comes as the conglomerate faces severe financial and operational difficulties.

According to a Bangladesh Bank report submitted to the High Court, Beximco Group had total outstanding loans and liabilities of Tk50,098 crore as of 30 November 2024.

Of the total, Tk25,524 crore – more than half – had already been classified as defaulted, while a substantial portion of the remaining liabilities was at risk of becoming defaulted.

Investigations by the Bangladesh Financial Intelligence Unit (BFIU) also found that large portions of the group's loans were obtained through irregular procedures, including through entities that were allegedly non-existent or merely paper companies.

Some funds were also allegedly channelled into capital-market share manipulation.

Following the fall of the Awami League government and Salman's arrest, Beximco's debt portfolio and assets came under scrutiny from the courts and Bangladesh Bank, with options including receivership and asset sales being considered to recover funds.

The group's financial distress has also disrupted operations.

Liquidity shortages, frozen operations and default classifications have made it difficult for some companies to import raw materials, while the government and state-owned entities have had to provide emergency support to clear workers' unpaid wages and other dues.

Nearly two years without normal board operations

The interim government appointed independent directors to Beximco for a three-year term after the conglomerate became embroiled in labour unrest, unpaid wages and salaries and mounting loan defaults.

The government also provided financial support to help clear workers' dues and tasked the independent directors with addressing the group's operational and governance problems.

Beximco subsequently filed a writ petition challenging the appointment of the independent directors. The resulting legal and regulatory uncertainty has effectively paralysed the companies' boards.

The boards have not held regular meetings to approve or discuss financial results, while the companies have also failed to disclose quarterly financial performance, annual reports and monthly shareholding statements.

China and India’s LNG imports are likely to rebound from multi-year lows once the Middle East supply crunch ends and prices ease, industry executives expect, reversing a pick-up in coal and oil use to generate power due to the US-Iran war.

The conflict has prevented Qatar and the United Arab Emirates from exporting most of their LNG via the Strait of Hormuz, where a fifth of global supplies used to pass, driving up prices and curbing demand in Asia.

Shell, the world’s biggest LNG trader, estimates the world has lost about 36 million tons of LNG from the Middle East so far this year, President for Integrated Gas Cederic Cremers said.

Asia’s spot prices have surged to nearly $30 per million British thermal units, from a pre-war range around $10 per MMBtu, as the region is competing with Europe for limited supplies ahead of winter.

“The prices have hit through the roof ... and that is definitely impacting the demand insofar as India is concerned because there are a lot of sectors which are price sensitive,” GAIL Chairman Deepak Gupta said at the Gastech conference in Bangkok.

“There are many industries which switch over to different fuels in case gas is not viable for them,” said Gupta, who heads India’s top natural gas distributor by market share.

Both GAIL and PetroChina, China’s top LNG importer, have deployed their trading teams to scour for alternative cargoes to replace Qatari and Emirati supplies since the war broke out.

Luo Yizhou, CEO of PetroChina International (PCI), the trading arm of the state energy major, said the company was working on the Sunday of February 28 in lieu of the Lunar New Year holiday when the US and Israel launched attacks on Iran.

“We had a meeting for something else, planning for this year, and then suddenly we saw the news, and then we switched the topic to how to secure supply,” Luo said.

“We were probably one day ahead of the market because most of the other companies start to work on Monday.”

GAIL’s Gupta said India had to limit gas consumption initially but resumed supplies to almost 90 percent to 95 percent as it ramped up its trading capability to buy LNG from elsewhere.

Exxon Mobil, GAIL and PCI executives expect the Middle East conflict to have a temporary impact on demand, with consumption to rebound once prices fall and global supply recovers.

“We are hoping that all this is very short term, and in the coming days, in mid-term and long-term, things will become normal,” Gupta said, adding that there may be about 150 million to 200 million tons of LNG coming online in the next four to five years which could cool prices.

“The sectors like the power sector in our country, like the various industries, they are going to go for more gas ... because it’s a cleaner fuel,” he said.

In China, PCI’s Luo expects demand from gas-fired power plants to rebound once LNG prices return to a “normal” range of $7 to $9 per MMBtu, citing strong growth in electricity consumption even as LNG imports have fallen.

“I think it is due to the temporary suppression of the demand faced by high price,” Luo said. “I don’t think it will kill the demand in China.”

Exxon expects substantial LNG demand growth in China over the long term, with extensive LNG import infrastructure built along the country’s east coast, the company’s vice president for global LNG marketing, Andrew Barry, told Reuters on the sidelines of the Gastech conference.

There is a lot of latent demand that is price sensitive, he said.

ExxonMobil remains confident in the diversification of its LNG portfolio, which includes assets and interests in the US, Mozambique, Qatar, Papua New Guinea and Australia. It continues to look at new opportunities with a focus on cost of supply.

“We still have an extremely bullish demand forecast out through to 2050,” Barry said.

AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of potentially existential risks from the technology, shaking confidence in the industry whose vast infrastructure spending has driven world stock markets to record highs.

The selloff rippled through the industry, where companies are increasingly relying on debt and circular financing to fund ambitious AI spending plans even as global borrowing costs, reflected in multi-year-high bond yields, continue to rise.

Anthropic CEO Dario Amodei, in a lengthy essay shared on X on Saturday, called on AI companies to slow the rate at which they advance model capabilities amid mounting fears AI could be misused.

Both Elon Musk, who runs xAI, and Sam Altman, CEO of OpenAI, said they agree with Amodei. Altman also said the company would not proceed with an IPO this year, citing safety concerns.

CHIP STOCKS LEAD GLOBAL SELLOFF

Wall Street’s major tech index, the Nasdaq 100, slid 1.2 percent to a six-week low in early trading as chip stocks, which have led the AI rally, fell the most, although it pared losses in early afternoon and was last down 0.4 percent.

“If this does lead to sort of a slowdown and a rethink of AI spending, that will have ramifications for the economy and some important sectors of the stock market, because essentially, we’ve been running hot based on AI spending,” said Steve Sosnick, chief market analyst at Interactive Brokers.

The Philadelphia chip index dropped 5.2 percent, with Nvidia down 3 percent, Advanced Micro Devices off 4.5 percent and Micron falling 5.4 percent. Semiconductor equipment makers Lam Research, Applied Materials and tech utility Bloom Energy lost more than 6 percent each.

Earlier in the day, Europe’s tech sector fell 2.2 percent, dragged by ASML’s 6 percent decline, alongside steep losses in Infineon and Siemens Energy, while in Asia, SoftBank plunged more than 10 percent and chipmakers TSMC and SK Hynix also retreated.

WARNINGS OF AI INTERNET TAKEOVER

Alarm about the potential harm from AI spiked earlier this month when Anthropic researcher Jacob Coxon resigned, stating that the AI giants are “gambling with our lives.”

A few days later, the San Francisco-based AI lab released a threat intelligence report detailing how its Claude AI models were used for activities ranging from weapons development and cyber operations to surveillance and fraud.

Over the weekend, Amodei wrote that in six to 12 months, AI agents “could be capable of taking over the entire internet potentially causing hundreds of billions of dollars in damage.”

Separately, OpenAI’s Altman warned in an interview that the risk of human extinction posed by AI was serious enough that AI companies and governments should act.

“The warnings should be taken seriously,” said Gillian Hadfield, Bloomberg Distinguished Professor of AI Alignment and Governance at Johns Hopkins University. “There are real risks of models doing things we don’t want them to do and which we don’t anticipate well.”

Several US lawmakers have raised concern about AI’s rapid progress and called for new rules.

US Senate negotiators are debating legislation that would require AI companies to demonstrate they are taking reasonable precautions, Reuters reported on Monday.

But US President Donald Trump on Monday appeared to dismiss the worries as a “sick conspiracy” against AI and data centers, which have become a flashpoint in the midterm elections.

AI-related trades have powered many of the gains in global equities since OpenAI released ChatGPT in 2022, but more recently cyberattacks by rogue AI agents and public discontent with data centre construction have raised opposition to the development of the industry.

The US and Chinese governments are expected to hold AI safety talks as part of bilateral discussions taking place this month, Reuters reported.

But China’s state-backed Global Times criticized the Anthropic essay in an editorial, calling it a “Cold War playbook” intended to curb the country’s technological development.

A growing concern for OpenAI and Anthropic is the rising competition from more affordable Chinese models such as Moonshot AI’s Kimi K3, Alibaba’s Qwen and DeepSeek’s offerings, which could pressure the pricing of larger, more costly models.

NOT ALL BELIEVE THE WARNINGS

Some investors dismissed the warnings from Anthropic and OpenAI.

Michael Burry, whose successful bets against the US housing market before the 2008 financial crisis were chronicled in the movie “The Big Short”, said in a message on X the warnings were “hype and puffery” and “cover for real uncontrollable slowing growth”.

Others have argued that record capital spending commitments suggest AI development is unlikely to slow.

Morgan Stanley forecast earlier this year that AI spending will surpass $1.3 trillion by 2027.

“The competitive race between companies and countries remains intense, and it’s difficult to imagine firms voluntarily stepping back while rivals continue to push ahead,” Deutsche Bank said in a note.

Meanwhile, Amodei’s Anthropic has pushed ahead with its public debut, expected next month as sources told Reuters that the company is in talks to bring in Nvidia as an anchor investor.

JPMorgan is set to launch a new index tracking government bonds from 26 frontier-market countries, including Bangladesh. The index will cover nearly $330 billion worth of local-currency government debt. What does that mean for Bangladesh and international investors?

What is a bond?

A bond is essentially a way for a government to borrow money. When the Bangladesh government needs to borrow, it can issue government bonds.

Investors buy those bonds and in return the government promises to pay interest and repay the principal when the bond matures. Bangladesh issues many of these bonds in taka. These are known as local-currency government bonds.

What is a bond index?

A bond index is a basket or list of bonds used as a benchmark to track the performance of a particular group of bonds or markets.

For example, an international investment fund looking to invest in frontier-market government bonds can use JPMorgan's index to see which countries and bonds are represented and how the market is performing.

JPMorgan is now creating a new benchmark specifically for local-currency government bonds from frontier markets.

What is a frontier market?

Financial markets are often broadly grouped into three categories: developed, emerging and frontier.

The US, UK and Japan, for example, have developed financial markets.

Countries such as India, Brazil and Indonesia are generally considered emerging markets.

Frontier markets are generally smaller and less-developed financial markets, with the potential for strong growth but also greater risks, less liquidity and less-developed financial infrastructure.

JPMorgan frontier bond index, covering $330b debt, to include Bangladesh
Bangladesh is classified as a frontier market in this context.

What exactly is JPMorgan doing?

JPMorgan is preparing to launch a new index called GBI-EM Edge by the end of September. It will track eligible local-currency government bonds from 26 frontier-market countries. The index will cover nearly $330 billion worth of debt.

This does not mean JPMorgan is investing $330 billion in these countries. Rather, the bonds represented by the index will have a combined value of nearly $330 billion.

Think of it as JPMorgan creating a global benchmark for a $330 billion pool of frontier-market government bonds.

Why is Bangladesh being included?

Bangladesh will be one of the 26 countries in the index. The countries expected to have the largest weightings include Bangladesh, Egypt, Vietnam, Morocco, Kazakhstan, Pakistan, Nigeria and Sri Lanka.

JPMorgan has capped the weighting of any individual country at 8%. Bangladesh is expected to receive the maximum 8% weighting. It means that, within this particular index, Bangladesh's eligible bonds can account for up to 8% of the index.

Why does this matter to Bangladesh?

The most important potential benefit is greater visibility among international investors. Large global investment funds often use major bond indexes as benchmarks for deciding where and how much to invest. Some funds also seek to replicate or track particular indexes.

Therefore, when Bangladeshi government bonds become part of a major international index, more global investors may start looking at Bangladesh's bond market. That could potentially lead to greater foreign participation in the domestic government-bond market.

But inclusion does not guarantee that foreign investors will pour money into Bangladesh. Investors will still consider Bangladesh's inflation, interest rates, exchange rate, economic outlook, market liquidity and policy risks before investing.

What does "local-currency debt" mean?

This is simply government debt issued in the country's own currency. For Bangladesh, a taka-denominated government bond is local-currency debt.

Suppose the government issues a bond for Tk10 billion. An investor buys it, the government pays interest and eventually returns the Tk10 billion when the bond matures. This is different from borrowing in US dollars or another foreign currency.

Why does borrowing in local currency matter?

Foreign-currency borrowing creates an additional risk for a government: exchange-rate movements.

Suppose Bangladesh borrows $1 billion when the exchange rate is Tk100 to the dollar. The debt was equivalent to Tk100 billion at that time. If the taka later weakens to Tk130 against the dollar, the same $1 billion debt would be equivalent to Tk130 billion.

So a weaker taka makes foreign-currency debt more expensive in local-currency terms. Local-currency borrowing avoids this particular exchange-rate risk for the government because it borrows and repays in taka.

The currency risk, however, does not disappear. It is largely shifted to the foreign investor, who is ultimately interested in the value of the investment in their own currency.

Why is JPMorgan launching the index?

There is growing interest among international investors in frontier markets because these markets can offer higher yields and potentially higher returns than more established markets.

According to Reuters, the new index has a nominal yield of almost 10.4%, around 440 basis points higher than JPMorgan's mainstream emerging-market local-currency bond index.

Higher yields can be attractive to investors. But they also reflect higher risks. Frontier markets can face greater currency volatility, lower liquidity and greater economic and policy uncertainty.

Which countries are in the index?

The 26 countries are: Albania, Angola, Bangladesh, Botswana, Côte d'Ivoire, Dominican Republic, Egypt, Georgia, Ghana, Jamaica, Jordan, Kazakhstan, Kenya, Morocco, Namibia, Niger, Nigeria, Pakistan, Paraguay, Senegal, Sri Lanka, Tunisia, Uganda, Uzbekistan, Vietnam and Zambia.

African countries will account for almost 45% of the index, while the Frontier Asia group -- mainly Vietnam, Kazakhstan, Pakistan and Bangladesh -- will account for nearly one-third.

What could it mean for Bangladeshi investors?

The index is primarily relevant to international investors and Bangladesh's government bond market, rather than being a new investment product for ordinary Bangladeshi savers. Greater international participation could potentially make Bangladesh's government-bond market deeper and more liquid. It could also encourage further development of the country's domestic capital market.

But it can work both ways. Once a country's bonds become part of a major global index, international investors also pay closer attention to its economic and financial conditions. A deterioration in confidence could therefore affect investment flows as well.

The bigger picture

The World Bank estimates that frontier-market economies are home to about one-fifth of the world's population, but account for only 3.1% of global capital flows and less than 5% of global GDP.

That gap is one reason international institutions have encouraged the development of deeper local-currency bond markets.

For Bangladesh, JPMorgan's move is therefore significant not because the bank is bringing $330 billion into the country, but because Bangladeshi government bonds are being placed on a major global investment benchmark alongside bonds from 25 other frontier economies.

The potential gain is greater access to international capital. The trade-off is greater exposure to global investors — and greater scrutiny of Bangladesh's economy, currency, policies and financial markets.

As multilateral trading system is facing serious challenges to deliver, it is now necessary to strengthen the trading system through reforms.

The reform could increase global economy by roughly 3 per cent or US$ 3 trillion by 2050 and also enhance global exports by around 20 per cent.

The World Trade Report 2026, just released by the World Trade Organization (WTO) in Geneva today (Tuesay) made these observations. The theme of the report is: ‘A critical juncture for the world trading system.’

wtr2World Trade Report 2026 at a display – WTO Photo

As per the report, for least-developed countries (LDCs), which currently account for less than one per cent of global trade, the gains could be particularly significant.

LDCs' GDP is projected to increase by 7.7 per cent due to benefits they would derive from tariff and other trade cost reductions, according to the report.

“High-income economies stand to gain substantially in absolute terms, with projected GDP gains of about US$ 1.7 trillion in 2023 dollars, reflecting in particular the benefits of lower trade costs in services,” the report continued.

The report is formally unveiled in Geneva on Tuesday at a session of the WTO Public Forum 2026. Earlier, a press conference also took place at the WTO secretariat to present the highlights of the report and reply questions of the media representatives.

WTO Chief Economist Robert Staiger along with report coordinators Roberta Piermartini and Kathryn Lundquist talked at the conference to explain the key features of the report. The press conference was conducted by Ismail Dieng, director of WTO’s information and external relations division.

World Trade Report 2026, however, cautioned that inaction to modernise the trading system could reduce global output by up to 10 per cent.

“The simulations by WTO economists showed that global GDP would fall by 5.1 per cent and global exports by 18.6 per cent in a geo-fragmented world scenario,” said Staiger. “The fragmented world means a world where the multilateral trading system splits into geopolitically aligned blocs.”

Again, in an ‘FTA world’ scenario, global GDP would fall by 6.9 per cent and global exports by 26.9 per cent, added the WTO chief economist.

The FTA world means replacement of the multilateral cooperation is replaced by a network of free trade agreements (FTAS) and absence of the WTO.

Now, if there is an enhanced cooperation in the world, where multilateral trade is reinforced, global GDP would increase by 2.9 per cent and global exports by 17.9 per cent, according to the report.

“The gap between strengthened multilateral cooperation and erosion of the WTO is equivalent to roughly 5 to 10 per cent of global real GDP,” added the report.

“If cooperation is replaced by an unstructured network of free trade agreements, LDCs could lose 16.5 per cent of GDP, more than three times the losses projected for high-income economies,” it further added.

The report mentioned that WTO's present challenges are, in many important respects, a consequence of the system's own achievements.

The multilateral organisation helped to create a more open, integrated and rules-based word economy, along with a situation where trade policy plays a more critical role, it added. As growing trade frictions become more complex, WTO membership also becomes diverse.

Despite various challenges, the WTO rules remain the essential legal foundation for international commerce. “Around 72 per cent of all global merchandise trade still takes place on the core most-favoured-nation (MEN) tariff terms negotiated and committed to by the WTO's 166 members,” the report said.

It also mentioned that though WTO members agree that the organisation WTO needs reform, they have struggled yet to reach agreement on how to update the rules on various issues.

The issues ranged from agriculture, services and development to concerns around transparency, subsidies and national security.

The report categorically said: “The future of the trading system will depend on members' ability to repair what is broken, update what is outdated, preserve what works, and adapt cooperation to new policy spillovers.”

“The world economy that the WTO helped to create does not weaken the case for rules-based cooperation; it makes renewal of that more urgent,” it added.

Robert Staiger, however, made it clear that the report does not prescribe a blueprint for WTO reform. “It highlights areas where adaptation of trade rules may be needed,” he added.

The report acknowledged that the multilateral trading system has delivered substantial gains, but not for all.

“Not all economies have shared equally in these gains,” it said. “Least-developed countries (LDCs) still account for less than I per cent of world trade, and some commodity-dependent economies and those with a low level of participation in global trade have experienced limited improvements or fallen further behind.”

This year’s trade report is the 24th edition of the WTO’s one of the key annual flagship publications. The World Trade Report was first published in 2003 focusing on development.